Elon Musk’s artificial intelligence startup xAI has sued Apple Inc. and OpenAI in U.S. federal court in Texas, accusing them of illegally conspiring to stifle competition in the fast-growing AI sector.
The lawsuit claims Apple’s integration of OpenAI’s ChatGPT into iPhones, iPads and Macs gives the chatbot an unfair advantage while sidelining Musk’s Grok AI assistant. xAI said it is seeking billions of dollars in damages, alleging Apple and OpenAI have “locked up markets to maintain their monopolies”, Reuters reported.
OpenAI dismissed the complaint as “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple did not immediately comment.
Musk echoed the lawsuit’s claims on his platform X, writing that despite Grok’s strong user ratings, Apple refuses to feature the app in its rankings. Earlier this month, he accused Apple of making it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Antitrust experts say the case could test whether courts recognize AI as a distinct market. They note Apple may argue its OpenAI partnership is a legitimate business choice and that it has no obligation to promote rivals.
The lawsuit adds to Musk’s broader legal battles with OpenAI, which he cofounded in 2015 before breaking away. xAI, launched less than two years ago, competes directly with OpenAI, Microsoft-backed AI ventures, and Chinese rival DeepSeek.
Apple’s App Store policies have been under fire before, notably in Epic Games’ lawsuit over payment restrictions.
